- The Sterling is in retreat as Brexit headlines continue to deliver more bad news than good.
- Hopes for a clean agreement ahead of Wednesday's summit are evaporating.
The GBP/USD is slumping into a notably bearish stance heading into Monday's London market session, struggling near the 1.3100 handle after weekend Brexit headlines drove the Pound into a bearish gap to start the week's trading, and the door remains open as buyers have been unable to close the gap.
Brexit back under a microscope as tempers flare
Brexit concerns have taken a harder edge for the upcoming trading week as the UK and the EU scramble to salvage a last-minute working deal ahead of Wednesday's European leader summit, where the outline of a plan was hoped to be presented. Eurosceptics that are populating the UK's parliament are increasingly calling for an all-out rebellion against UK Prime Minister Theresa May, with former Brexit Secretary David Davis lashing out at the PM for attempting to squeeze through a deal that would see the UK restrained within the EU's customs union for an undefined amount of time following Brexit, a solution that has severely angered the Brexiteer contingent.
Monday is a thin showing for the Cable on the economic calendar, and GBP/USD traders' attention will be split between Brexit headlines and Monday's upcoming US Retail Sales figures, due at 12:30 GMT with the headline core Retails Sales forecast to hold steady at 0.3%.
GBP/USD levels to watch
The Sterling is seeing hard pressures at the 1.3100 level after slipping on the market open, and Sterling bulls will have their work cut out for them if they're going to close Monday's gap to 1.3150, while the downside sees near-term swing lows from early October marking out a floor from 1.3030, and according to FXStreet's own Valeria Bednarik, "in the daily chart, the pair offers a neutral stance, as the pair held above a flat 20 DMA, while technical indicators turned lower, the Momentum confined to neutral readings and the RSI currently at 55, both lacking directional strength. According to the 4 hours chart, the pair risks extending its downward move, as it settled below a still bullish 20 SMA, while technical indicators maintain their bearish slopes in negative territory."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD regains the constructive outlook above the 200-day SMA
AUD/USD advanced strongly for the second session in a row, this time extending the recovery to the upper 0.6500s and shifting its focus to the weekly highs in the 0.6580-0.6585 band, an area coincident with the 100-day SMA.
EUR/USD keeps the bullish performance above 1.0700
The continuation of the sell-off in the Greenback in the wake of the FOMC gathering helped EUR/USD extend its bounce off Wednesday’s lows near 1.0650, advancing past the 1.0700 hurdle ahead of the crucial release of US NFP on Friday.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Bitcoin price rises 5% as BlackRock anticipates a new wave of capital inflows into BTC ETFs from investors
Bitcoin (BTC) price slid to the depths of $56,552 on Wednesday as the cryptocurrency market tried to front run the Federal Open Market Committee (FOMC) meeting. The flash crash saw millions in positions get liquidated.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.